Question

Sheridan Company uses a periodic inventory system. For April, when the company sold 650 units, the following information is available. Units Unit Cost Total Cost April 1 inventory 350 $24 $ 8,400 April 15 purchase 370 29 10,730 April 23 purchase 280 31 8,680 1,000 $27,810 Calculate weighted average cost per unit.

Answer 1

$27.18 per unit

Step-by-step explanation:

The computation of the average cost per unit is shown below:

= (Beginning inventory units × price per unit + purchase inventory units × price per unit + purchase inventory units × price per unit ) ÷ (Beginning inventory units + purchase inventory units + purchase inventory units)

= (350 units × $24 + 370 units × $29 + 280 units × $31) ÷ (350 units + 370 units + 280 units)

= ($8,400 + $10,730 + $8,680) ÷ (1,000 units)

= ($ 27,810) ÷ (1,000 units)

= $27.18 per unit